May 2022 Market Report
What’s going on in Snohomish County:
Interest rates are still on the rise
Home prices are still increasing
Current market expectations
New strategies for buyers and sellers in this current market
Watch the video to get the full breakdown
We’re back again with another real estate market report for Snohomish County!
So, let’s talk about some of the key data points we’re seeing right now.
We’ll talk about how buyers and sellers can be prepared in this hyper competitive market, and finally we’ll provide some insight for the rest of 2022 and what our expectations are for the Snohomish real estate market.
The Highlights
Starting with Sales Price, we are still seeing an increase in the average sales price year over year at 24.4%. This increases the average sales price for a single family home in Snohomish County to $781,000. Still a staggering increase year over year. This has been going on for over eight months straight.
Slightly up from last month, New Listings are up 5% year over year, meaning there is slightly more inventory coming onto the market this month. This is a great sign! While there are more homes coming on the market than there were a year ago, they are still selling super fast because there is still a huge buyer back log. Total Number of Homes for Sale is down at a decrease of 19% year over year.
Days on the Market are at 5 days, no change from the last four months. To be honest, those five days are merely for the offer review time. If we had no offer review dates we would probably have homes selling in one day with so much interest and offers being put on each house that goes on the market.
Months of Inventory Supply, which helps understand how long it would take to sell every home on the market, is at about 0.5 months of inventory. This as been the case for close to two years now. A 6 month inventory of homes is what most economists see as a balanced market. With low inventory and high demand, this quick cycling market in Snohomish County is making it extremely difficult for buyers.
List Price to Sale Price Ratio is 106.7% meaning on average homes are selling for 6.7% above the original list price. This is the same as last month as homes are still going for well above list price.
What does this mean for buyers, sellers, and homeowners?
As a buyer, if you are waiting for interest rates to drop, stop waiting! We do not expect to see prices drop anytime soon. But what you can do is buy now and refinance your home down the line to get a lower rate on your mortgage.
We expect prices to continue to increase by 8% to 12% this year. So waiting for a lower price is unlikely to happen in the near future. Until we see the inventory levels increase dramatically, prices will not even flatten let alone decrease.
Competition is starting to go down and we have seen a lot of clients get a home under contract in the last month. Just a month ago we were seeing 10-15 offers on a home and now it is starting to come down to 2-3 offers.
As a seller, as interest rates continue to go up you will have more competition on the market as buyers begin to have less purchase power. It is really important to price your home with what the comparable support. Pricing it above those comparable will more than likely result in needing a price reduction down the line.
Are you ready to take the next steps toward buying or selling your home?
When you work with The Novak Team, you are putting to work the vast experience of some of the top agents in the industry, not just the area. Tap the link below to schedule a zero commitment consultation with me to see if it would be a good fit.